Portfolio2- High-Beta of Tomorrow

Hello Investors,

It’s past 5 months when we have published our first model portfolio undervalue-gems and since then it has delivered stellar 32 % upside so far against Sensex’s 3.69% return.

Now today we bring you our second model folio. This folio we count for investor who has above the average risk profile. So without waiting lets go to our list of high-beta stocks.

Portfolio2 High-Beta	Suzlon Energy	Marksan                Pharma	South India Bank	Manali Petrochemical
Sector	Renewable        Energy	Pharmacy	Bank	Petrochemical
Current Price (23thFeb )	18.05	49.7	20.55	34.85
M cap(cr)	9069	2034	3704	599
P/E	42	121.22	9.51	12.36
Industries P/E	27	27.68	24.03	30.29
Divined Yield	0	0.24	2.43	1.43
EPS	0.43	0.41	2.16	2.82
Book Value	1.23	10.02	30.57	16.43
Our Folio allocation (%)	30	30	20	20

As you notice here we have listed 4 stocks where two are priced high in valuation with PE above industries PE  where other two are at low PE.

Now Suzlon and Marksan Pharmacy are two stock we picked which are currently coming from negative to positive trends. We strongly believe that this two stocks are turnaround story. You can read our last article on Suzlon ‘Suzlon- Wind is Started Flowing’. On other had Marksan Pharm recently got UK regulatory approval from its GOA plant. Year ago due to non-compliance issue stock halved and hit 40 from 100.

For rest two stock South India Bank and Manali Petrochemical, we find that market has valued this stock very low and any positive even can bring them to eye of market. Also both stocks are consistent dividend player which added in its value.

So if you are ready with fund and want some phenomenal return on long side with ability to withstand higher risk then you can pick this folio in one go.

Here we are keeping investment horizon more than 2 year because diamonds took time to get in shape and then shine.

Be Smart. Invest Smartly

Not Always Blue Chips

If you are willing to take more risk and want to make more money than Blue chip might not good Idea to go.

For last couple of month some small value stock completely outperforms and still hitting the bar.

1. Himalaya International:

CMP: 20 INR

On 1st April 2014: 8.95

Change: 11.05 INR (123%)

2. HCL Info system:

CMP: 53.5 INR

On 1st April 2014: 38.4

Change: 15.1 INR (39%)

3. Everready Industries:

CMP: 54.85 INR

 On 1st Feb 2014: 34.9 INR

Change: 19.95 INR (57 %).

This is only some of stock that now breaks the silence. If you are ready to take calculated risk you must have one of above in your Portfolio.

Be Smart. Invest Smartly.

Multibagger stocks of tomorrow.

How to find Multi Bagger Stocks?

1.Promoter’s track record.

 

This parameter is having highest priority. If the management is not honest, will they want to share the benefit with you? No, they will look for the first opportunity to draw off the profits and pull the wool over your eyes. If you study TCS, Tata Motors or any of Tata group of companies, you will understand that they are having excellent top management. We can trust Tata. Promoter record should not be fraudulent.

2.Unique business model.

 

A stock with a monopoly or duopoly command in that particular market sector would be great. VST Industries, for instance, operates in the particular cigarette industry, where there is no danger of fresh competition coming in here in India. CRISIL, Nestle are good examples. A powerful brand that draws customers is necessary.

3. Business growth opportunity should be exponential

In simple words, if you are pretty sure about company’s growth at the rate of 20% to 25% on year on year basis with significant visibility for more than 5+ years, then you have identified correct multibagger stock.

4.Capital requirement should be less

Company should require minimal capital but generating huge returns there from. Generally IT companies require very minimum capex for expansion as compared to infrastructure/real estate company to run their projects.

other than this their are many other factor.

Some stock that I have sorted out which could be Run a Long way..

Adani Power : CMP 48.4 .

Tata Coffee: CMP 944.

Ashok Lyend: CMP 22.7

Jaiprakash Power :CMP 14.25

Tata Motors: CMP 396

Be Smart. Invest Smartly.